[Federal Register: August 19, 2008 (Volume 73, Number 161)]
[Notices]
[Page 48382-48383]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr19au08-52]
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DEPARTMENT OF ENERGY
Western Area Power Administration
Loveland Area Projects--Rate Order No. WAPA-141
AGENCY: Western Area Power Administration, DOE.
ACTION: Notice of rate order extending transmission and ancillary
services formula rates.
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SUMMARY: This action is being taken to extend the existing Loveland
Area Projects (LAP) transmission and ancillary services formula rates
through February 28, 2011. The existing LAP transmission and ancillary
services formula rates will expire February 28, 2009, with the
exception of the Regulation and Frequency Response service rate which
expires May 31, 2011.
FOR FURTHER INFORMATION CONTACT: Mr. James D. Keselburg, Regional
Manager, Rocky Mountain Region, Western Area Power Administration, P.O.
Box 3700, Loveland, CO 80539-3003, (970) 461-7201, e-mail
keselbrg@wapa.gov, or Ms. Sheila Cook, Rates Manager, Rocky Mountain
Region, Western Area Power Administration, P.O. Box 3700, Loveland, CO
80539-3003, (970) 461-7211, e-mail scook@wapa.gov.
SUPPLEMENTARY INFORMATION: By Delegation Order No. 00-037.00, effective
December 6, 2001, the Secretary of Energy delegated: (1) The authority
to develop power and transmission rates to the Administrator of the
Western Area Power Administration (Western); (2) the authority to
confirm, approve, and place such rates into effect on an interim basis
to the Deputy Secretary of Energy; and (3) the authority to confirm,
approve, and place into effect on a final basis, to remand, or to
disapprove such rates to the Federal Energy Regulatory Commission
(FERC).
The existing formula rates approved under Rate Order No. WAPA-106
\1\ became effective on March 1, 2004, and are approved through
February 28, 2009. Subsequently, Rate Schedule L-AS3, Regulation and
Frequency Response, was revised and approved under Rate Order No. WAPA-
118 and became effective June 1, 2006, and is approved through May 31,
2011.\2\ Western is proposing to extend the existing LAP transmission
and ancillary services formula rates pursuant to 10 CFR part 903.23
(b). The existing LAP rate formula methodology collects annual revenue
sufficient to recover annual expenses, including interest and capital
requirements, thus ensuring repayment of the project within the cost
recovery criteria set forth in DOE order RA 6120.2. Western is seeking
this extension to provide more time for the evaluation of new rate
requirements for transmission and ancillary services mandated under
FERC Order 890 and the evaluation of adjustments to the formulae for
ancillary services. For these reasons, Western is extending the
existing rate formulae for transmission and ancillary services through
February 28, 2011.
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\1\ WAPA-106 was approved by FERC on a final basis on January
31, 2005, in Docket No. EF045182-000 (110 FERC ] 62,084).
\2\ WAPA-118 was approved by FERC on a final basis on November
17, 2006, in Docket No. EF065182000 (117 FERC ] 62,163).
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Western did not have a consultation and comment period and did not
hold public information and comment forums, in accordance with 10 CFR
part 903.23(b). Following review of Western's proposal with the DOE, I
hereby approve Rate Order No. WAPA-141 which extends the existing LAP
transmission and ancillary services rate
[[Page 48383]]
schedules L-NT1, L-FPT1, L-NFPT1, L-AS1, L-AS2, L-AS4, L-AS5, L-AS6 and
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L-AS7 through February 28, 2011.
Dated: August 12, 2008.
Jeff Kupfer,
Acting Deputy Secretary.
Department of Energy
Deputy Secretary
Rate Order No. WAPA-141.
In the Matter of: Western Area Power Administration Rate
Extension for Loveland Area Projects Transmission and Ancillary
Services Formula Rates.
Order Confirming and Approving an Extension of the Loveland Area
Projects Transmission and Ancillary Services Formula Rates
The Loveland Area Projects (LAP) transmission and ancillary
services rate formulae were established following section 302(a) of
the Department of Energy (DOE) Organization Act (42 U.S.C. 7152).
This act transferred to and vested in the Secretary of Energy the
power marketing functions of the Secretary of the Department of the
Interior and the Bureau of Reclamation under the Reclamation Act of
1902 (ch. 1093, 32 Stat. 388), as amended and supplemented by
subsequent laws, particularly section 9(c) of the Reclamation
Project Act of 1939 (43 U.S.C. 485h(c)), and other Acts that
specifically apply to the project system involved.
By Delegation Order No. 00-037.00 effective December 6, 2001,
the Secretary of Energy delegated: (1) The authority to develop
power and transmission rates to the Administrator of the Western
Area Power Administration (Western); (2) the authority to confirm,
approve, and place such rates into effect on an interim basis to the
Deputy Secretary of Energy; and (3) the authority to confirm,
approve, and place into effect on a final basis, to remand, or to
disapprove such rates to the Federal Energy Regulatory Commission
(FERC). This rate extension is issued pursuant to the Delegation
Order and the DOE rate extension procedures at 10 CFR part
903.23(b).
Background
The existing formula rates, approved under Rate Order No. WAPA-
106, were approved for five (5) years and are effective through
February 28, 2009. Subsequently, Rate Schedule L-AS3, Regulation and
Frequency Response, was revised and approved for five (5) years
under Rate Order No. WAPA-118 and is effective through May 31, 2011.
Western is not seeking to extend Rate Schedule L-AS3 for Regulation
and Frequency Response service as part of this extension.
Discussion
On February 28, 2009, Western's LAP transmission and ancillary
services formula rates will expire, with the exception of Regulation
and Frequency Response service, which will expire May 31, 2011.
Western is proposing to extend the existing LAP transmission and
ancillary services formula rates pursuant to 10 CFR part 903.23(b).
The existing LAP rate formulae methodologies collect annual revenue
sufficient to recover annual expenses (including interest) and
capital requirements, thus ensuring repayment of the project within
the cost recovery criteria set forth in DOE order RA 6120.2. Western
is seeking this extension to provide more time for the evaluation of
new rate requirements for transmission and ancillary services
mandated under FERC Order 890 and the evaluation of adjustments to
the formulae for ancillary services. For these reasons, Western is
extending the existing rate formulae for transmission and ancillary
services through February 28, 2011.
The process will take several months to complete because of the
complex issues Western and its interested parties must address. It
will also offer opportunities for public information and comment
forums. For these reasons, Western seeks to extend existing Rate
Schedules L-NT1, L-FPT1, L-NFPT1, L-AS1, L-AS2, L-AS4, L-AS5, L-AS6
and L-AS7. Western did not have a consultation and comment period
and did not hold public information and comment forums, in
accordance with 10 CFR part 903.23(b).
Order
In view of the above and under the authority delegated to me, I
hereby extend for a period effective from March 1, 2009, through
February 28, 2011, the existing rate schedules L-NT1, L-FPT1, L-
NFPT1, L-AS1, L-AS2, L-AS4, L-AS5, L-AS6 and L-AS7 for LAP
transmission and ancillary services, excluding L-AS3 for Regulation
and Frequency Response service.
Dated: August 12, 2008.
Jeff Kupfer,
Acting Deputy Secretary.
[FR Doc. E8-19161 Filed 8-18-08; 8:45 am]
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